Does consolidating credit card debt hurt your credit

However; if you’re struggling, which is why you were even seeking this information today, it could only take one unforeseen emergency circumstance such as a car expense or medical bill, to send you on a downward spiral after consolidating your debt — putting you back at square one again, trying to figure out how you will make your next payment.Potential financial hardships to consider…So a consolidation will only help you if it allows you to save money and have reserves for an emergency, whereas other debt relief options available in 2017 will allow you to save money while taking care of your debts.So if an unforeseen circumstance happens, you will be more suited to handle it.* Put the average interest rate that you are paying or that you were paying on your accounts.This will be used to calculate how much you would end up paying when staying current on your accounts. In some cases, debt consolidation can help your credit score. It can also depend on which option you use for consolidation, since there’s more than one way to consolidate your debt. When you consolidate debt, you have a payment plan that you’re supposed to follow.For the most part, if you use the right option for debt consolidation for your circumstances, it shouldn’t hurt your credit score. If you follow that plan correctly, this means you’re making payments on time and taking steps to cut your debt load.

So for the next 2-years where you would still be paying on a consolidation, you’re in fact now in a favorable position where you can put money away and start becoming more self-sufficient instead of relying on credit.

Otherwise, you can have a real mess on your hands and can ruin your credit in the process.